Royal Enfield will invest around Rs 800 crore to expand its capacity to meet the growing demand, develop new products and market expansion.
Siddhartha Lal, MD & CEO, Eicher Motors, said, “Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally.”
The proposed investment by Royal Enfield would be made towards the company’s upcoming manufacturing facility at Vallam Vadagal near Chennai, product development, two technical centres in the UK and India and towards market expansion.
The plant is expected to be operational by August 2017. With this third plant, combined capacity of Royal Enfield is expected to be 825,000 motorcycles in 2017-18.
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